How to build AI startups with a 35 step playbook

TL;DR

Start by choosing an underserved niche that rides a trend, then validate pain points and content preferences, build an audience on one platform, and ship a V1 product using AI tools. Reinvest profits to improve the product and content, keep the team small, and explore creator partnerships to scale. This approach creates a portfolio of cash flowing businesses rather than a single product.

Transcript

today we're going to go through a playbook actually the complete playbook for building profitable companies in the AI age there's 35 steps we're going to go one by one uh it's going to get your creative juices flowing i brought on Jordan Mix who's been on the pod before who I work with he's a partner at Lelay Checkout our holding company let's just... Read More

Key Insights

• X is a foundational advice to go heads down and schedule dedicated time to start a startup even if you have a full time job.
• The key to market fit is finding an underserved niche and riding a trend to ease growth and opportunity.
• Understanding pain points and the content formats that resonate is essential to build an audience and convert them into customers.
• Idea generation can be aided by data backed tools like idea browser that suggest practical startup ideas.
• A lean development approach uses AI tools to build a V0 prototype and prototype driven by customer feedback.
• Owners should consider offering a product as a service initially, using a V1 with one killer feature plus necessary table stakes features.
• Creator partnerships can provide distribution leverage through equity or revenue share arrangements.
• Public facing tools built on free platforms help drive top of funnel and establish credibility beyond the core product.
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Questions & Answers

Q: What is the first practical step to start a startup project according to the playbook?

The first practical step is to go heads down and schedule dedicated time for startup work, even if you have a full time job. This period should be protected and focused on exploring ideas, validating problems, and starting product development. The goal is to create consistent, disciplined progress and avoid procrastination while you evaluate potential niches and concepts.

Q: How should I choose an underserved niche to increase my chances of success?

Choose an underserved niche by looking for areas with less competition yet clear demand. The playbook suggests riding a trend to amplify opportunity and using data sources like trends and content types to understand what resonates with the target audience. Start small, observe how the niche behaves on platforms, and size the market opportunity by watching how it evolves over time.

Q: What role do AI tools play in the initial product development phase?

AI tools are used to build a V0 prototype and create a product requirement document, conduct competitive analysis, and help with positioning and copy. Tools mentioned include Manus, V0, Bolt, Cursor, and Windsurf, which support design, prototyping, and iteration. The emphasis is on leveraging AI to accelerate learning, reduce cost, and validate concepts quickly.

Q: What is a V1 and how does it differ from a V2 in this playbook?

A V1 is a version with a single killer feature plus essential table stakes features needed for launch. It focuses on validating product-market fit with a practical, testable feature set. A V2 expands on the initial success by adding complementary features, scaling the content flywheel, and enhancing the product with broader capabilities such as supply and demand dynamics in a marketplace.

Q: Why should I consider a services based MVP before software?

A services based MVP allows you to get paid while learning real user workflows and pain points. It enables rapid feedback and designs that are closely aligned with customer needs. Over time, the service can be automated into software or a productized solution, while you continue to refine the underlying business model and value proposition.

Q: How can creators contribute to a startup as part of the playbook?

Creators can contribute by taking equity or sharing revenue as part of partnerships, which aligns incentives and accelerates distribution. Their content expertise helps with branding, marketing, and promotion, while the startup gains access to an audience already engaged with relevant topics. The exact arrangement should be negotiated case by case but often ranges based on influence and contribution.

Q: What is the rationale behind building public facing tools early?

Public facing tools serve as top of funnel growth accelerators and credibility builders. They let your audience interact with useful utilities tied to your niche, generate organic visibility on social platforms, and attract potential customers for your core product. These tools can be created using accessible AI coding platforms and shared to demonstrate value while you iterate on the business model.

Q: How should I approach partnerships with creators to maximize impact?

Approach partnerships with a founder mindset, offering generous initial terms to secure commitment from creators who can drive early traction. Use equity or rev share to align incentives, and create clear expectations around the creator’s role, content output, and performance milestones. As the product matures, you can adjust terms while maintaining strong collaboration and mutual benefit.

Q: What is the strategic value of maintaining a portfolio of businesses?

A portfolio of cash flowing businesses provides diversification, risk management, and cross selling opportunities. Each business can reinforce the others through shared content, distribution channels, and technology. The strategic aim is to build complementary products and services that collectively improve retention and long term value.

Summary & Key Takeaways

• A first point is to focus on an underserved niche and align it with a growing trend, which helps create opportunities and clear positioning. The process emphasizes understanding customer pain points and the kind of content that resonates with them to attract an audience.

• A core strategy is to use AI tools to build an initial prototype and a simple product that can be tested with real users. Keeping the team small and iterative allows for faster learning and adjustment based on feedback.

• A long term plan involves surfacing fresh ideas from users and trends while building public facing tools to drive top of funnel growth. Partnering with creators for equity or revenue share can accelerate distribution and scale.